Analysis Of The Investment Of XG Co.,based On Pe's Perspective

Popular entrepreneurship and innovation is a major reform initiative in China.But,recent years,merchant banks are tightening the credit scale.Private equity fund provided funding channels except the merchant banks and rich additional services.So more and more companies incline to bring on private equity investors.However,the managers are lack of understanding of private equity fund.Also private equity invest mixes the knowledge of technology,finance,law,and other aspects.Under this background,this paper chose a high-tech enterprise like XG company as analysis object,make a whole process analysis and display covered from due diligence to investment negotiation from the perspective of private equity fund.First,the paper analyses the basic layout,industries,products and business,financials using methods of case study,PEST analysis,SWOT analysis and DuPont Analysis.And conclude that XG company is likely IPO.Under the assumption that IPO is the way of exception,this paper chose trigeminal tree valuation model which more suited to the high-tech enterprises after comparing popular valuation methods.And then decide if to conduct the investment.Then design investment plan and term sheet based on the above analysis.And analyze the risk of investors and companies created by the term sheet.This paper chose the XG company as analysis object,aiming to sufficiently explain the whole process including due diligence,marketing,finance analysis,law analysis and business negotiation,wishing to contributes to provide valuable reference for both investors and managers.